How can loans be obtained for sole proprietorships in 2020? And if those who ask for the loan is considered a paying tive cat or protested, the loan you can get the same?
There is a substantial difference between personal loans and those for sole proprietorships, and this mainly depends on the type of guarantee that must be given when applying. There are advantages and disadvantages to this type of loan application.
Loans for individual companies 2020: what they are, requirements for obtaining them
Loans for individual companies are loans that are requested by individuals who own a company – with or without employees – to start their own business.
Loans for sole proprietorships, unlike personal loans, do not require a paycheck guarantee, for example. On the other hand, it is necessary that the owner of the sole proprietorship is obviously in possession of the VAT number, in addition to having registered in the commercial register.
We are talking about a different situation, above all because in this case it is a company that we speak of and not the individual and there are multiple aspects to consider.
For example, young entrepreneurs who need a quick loan for the sole proprietorship in order to manage the capital of the nascent company fall into these categories.
It may happen that when you open your own business, more expenses are revealed than expected and then you need to apply for a loan, so that your professional activity can be implemented.
But what are the requirements for obtaining a fast loan for a sole proprietorship?
Obviously you need to demonstrate the solidity of your professional project. It starts from a detailed business plan that allows the finance company to analyze the market area in which it is decided to move.
A business plan is a feasibility document that describes the business plan, that is, it briefly illustrates the characteristics of the company, its objectives and the strategies it is able to implement to achieve these objectives.
Next we need to analyze:
- The future potential of the project;
- The need to improve some technological aspects and thus obtain more important results.
Are you a self-employed and want a loan for a sole proprietorship? Requirements needed.
There is a further difference to take into account if you are applying for an individual company loan, or that which concerns your status as a self-employed person.
Loans of this type, generally, for those between 18 and 35 years of age, are managed by Good Finance, which takes care of proposing ideal financing solutions for the start-up of new businesses by young people.
The basic requirements you need to start your business are:
- Be 18 years old;
- Not be classified as employees of other companies;
- Being resident in Italy;
- Have the legal and operational headquarters of the company in Italy.
This type of loan cannot be requested by a person who is employed or has an employment contract.
Loans for individual firms to bad payers: can they be obtained?
It can happen that the person applying for a loan to finance his sole proprietorship is considered a bad payer, so how do you do it?
A bad payer or protester is a person who appears on the list of subjects who are not favorites to apply for a loan. Usually he is considered a bad payer, a person who always pays overdue installments or who even becomes unable to pay anymore.
Getting an individual firm loan if you are considered bad payers is very complex, but not impossible. The main solutions are two:
- Having a guarantor, a reliable figure for the bank, with a valid income document, a solid financial position and a proven creditworthiness. In this case, we then speak of a surety: if the loan applicant – that is, you – fails to pay the installments, the guarantor (generally a family member) will take care of it directly.
- The mortgage on the property, or make sure that your home is a guarantee. However, this option would be better to evaluate it carefully, because especially if the investment you are making is to start a new business, the risks of failing are 50%.
In the event of a mortgage on the property, if the person who received the loan was unable to repay the debt, he would incur a forced expropriation procedure: the property foreclosure. In a nutshell, the house will become the property of the lender (bank or financial company) and will be sold at auction to satisfy the credit.
The advice is to always get help from expert and certified professionals, when making decisions like these, in order to correctly evaluate what is the best solution for your situation.